CONTRACTS FOR SERVICE

(a) The department shall include in its contracts with service providers under this chapter or Subchapter E, Chapter 117 , provisions relating to:

(1) clearly defined and measurable program performance standards that directly relate to the service provided;

(2) clearly defined penalties for nonperformance of a contract term; and

(3) clearly specified accounting, reporting, and auditing requirements applicable to money received under the contract.

(b) The department shall monitor a service provider's performance under a contract for service under this chapter or Subchapter E, Chapter 117 . In monitoring performance, the department shall:

(1) use a risk-assessment methodology to institute statewide monitoring of contract compliance of service providers; and

(2) evaluate service providers based on clearly defined and measurable program performance objectives. Added by Acts 1999, 76th Leg., ch. 213, Sec. 8, eff. Sept. 1, 1999. Amended by: Acts 2015, 84th Leg., R.S., Ch. 1 (S.B. 219 ), Sec. 4.354, eff. April 2, 2015.